6 Financial Data and Projections

Initial Expenses
We estimate that the capital required to bring the business into operation will total 280,000 pesos
which includes the construction, location, equipment. Ingredients, and fees. The cost of each are
illustrated below.

Construction (P70, 000) –The cost which Feel the Peel paid for the building a new stand/branch.

Location (P60,000) – The payments for rent where we decided to establish a new stand/branch
which inside Cavite State University Imus Campus at the canteen.

Equipment (P60,000) – The tool and equipment used to make sioorap.

Ingredients (P50,000) – The raw materials and ingredients used to make sioorap.

Fees (P40,000) – The fees paid for the business permit, registering and various other fees to
legalize the business.

Initial Expenses Distribution

Expense

13%
25% Construction
Location
18%
Equipment
Ingredients
22% Fees
22%
6.2 Operating Expenses

The estimation of our annual operating expenses to run the business will initially total P170,000
including the staff, utilities, material, marketing, and interest. There expenses will vary each year
and will gradually drop; yearly estimates follow.

Expense Year 1 Year 2 Year 3 Year 4 Year 5

Staff P60, 000 P60, 000 P60, 000 P55,000 P45,000

Equipment P60,000 P55,000 P45,000 P30,000 P25,000

Advertisement P20,000 P20,000 P20,000 P10,000 P10,000

Rental P60,000 P50,000 P50,000 P40,000 P40,000

Loan P60,000 P50,000 P50,000 P40,000 P40,000

Repayment

Interest P1,500 P1,500 P1,500 P1,500 P1,600

TOTALS P261,500 P236,500 P226,500 P176,500 P161,500

6.3 Gross Profit per Unit Sold

The gross profit of the product is computed as cost of goods subtracted from sales.

6.4 Expected Market Share

The Sioorap will retail at 70 pesos (12pcs/1dozen) and have an expected lifespan of 2weeks
(frozen).in relation to some other siomai product our product sioorap is not that expensive yet
healthy and delicious.

The company have conducted our survey to 250 students of Cavite State University Imus-Campus.
and asked them whether they would purchase a siomai/sioorap, knowing the benefits and the price
(refer to Appendix 4); 45% said they would purchase it if it was available in the market, 20% said
they will not try it since its made by banana peel, and 35% said they might try and buy one as
illustrated below. As to not overestimate, the figure 45% will be used as the target market share
over the first 5 years.
 Market Share Survey

20%
Would Purchase
45% Might Purchase
Won't Purchase

35%

6.5 Expected Net Revenue

Based on our 5 years market share target we can expect to gain by more than P 400,000 while
maintaining a gross profit of 10%, and aggressively planning for 8% sales yearly. The first year
expected annual net profit will be P143,000 and changed to P266,000 in the next five years.
This plan outlines are Feel the Peel concept, philosophy and forecasted financials.

Year 1 Year 2 Year 3 Year 4 Year 5

Sales P 569,400 P 669,000 P 769,000 P 869,000 P 969,000

Cost of Goods P 266,400 P 276,000 P 286,000 P 269,000 P 306,000
Gross Profit P 304,000 P 334,000 P 364,000 P 394,000 P 424,000
Less Expenses P 160,000 P 140,000 P 130,000 P 120,000 P 110,000
Net Profit P 143,000 P 173,000 P 203,000 P 233,000 P 266,000
7 Implementation Plan

7.1 Gantt chart

7.2 Promotion Schedule

The implementation of Feel the Peel organization promotional schedule is a critical aspect of the
success of the product. Figure 7.3 demonstrates the schedule in a 4-stage format in order to build
a solid implementation strategy. As seen in 7.1 advertising direct marketing are initiated in
12/20/2017. In this month we will see how product will hit the market and consumer perfectly.

The company’s promotion will include the following as broken down in 7.3

 Free tasting and distribution of fliers and brochure into the public to encourage the
consumer to buy our product and to help spread our brand name.
 Creating affiliations with social media websites; like creating a facebook page to
easily capture the online sales market and to spread it by sharing and sending
through messenger, to help increase brand awareness.
 Placing classified ads in the newspapers and.
 Joining franchising food expos to successfully established our product to the future
consumer.
Stage Implementation Strategy
Advertisement on facebook.com and will link
to FeelthePeel.com to provide more in-depth
information regarding on the product. In the
initial stage of development of promotion this
Stage 1 will for the organization to reach the target
audiences and to educate them on the benefits
the product has. This is important, in the initial
stage to attain as it will build the reputation,
quality and make the product known to target
audience.
The company will be informing direct retail
stores, street food stall about the FeelthePeel
product offerings. This is a stage where our
company will rely on direct selling and also in
Stage 2 retail distributors to be well informed about the
product in order to make better
recommendation to both somai lover that on
diet and commercial healthy food, delicious
and but not that pricey.
Stage 3 will work in accordance with stage 2.
We endeavors to promote product through
Stage 3 such companies to reach the target market
In addition, advertisements will be placed in
food brochure to catch the consumer attentions
Stage 4 we will be placing part in food expos,
we’ll have fun activities and we will give
Stage 4 freebies and some free taste of our product.
8 Evaluation and Control

Feel the Peel pride themselves on high levels method of control and evaluation methods.
These have been depicted by the company in extensive quality control, cleanliness and risk
analysis and evaluation.

8.1 Quality Control

It is an ongoing process for Feel the Peel organization to ensure Total Quality Management
(TQM) is met within the organization. Feel the Peel works accordance with department of
health to meet their standards and to meet the Filipino taste standards. Such standards will
be met by assuring how clean and how tasty our product before releasing it to the market.
By having quality control action to monitor the weights, measurements, texture, colors,
and the taste before distribution. Management staff will document progress to continually
improve quality of all production. Our ultimately responsibility is to coordinate the
standards of manufactured products. From the time where the raw material ingredients
received until the finished products.

Feel the Peel ensures that the product is consistent, unaltered and at the highest quality.

8.2 Risk Analysis

Feel the Peel organization will immediately change the material/ingredients product if
management found it is not in good condition and does not taste good. While making the
product it is mandatory for us to use disposable gloves and hairnet to secure the product is
clean and healthy and required to wash hand first before touching anything.
In terms of deliveries, Feel the Peel will keep a record of receipts to ensure that purchasing
is performed correctly.

8.3 Evaluation Analysis

Feel the Peel evaluations will be based primarily on meeting sales and market share
expectations as described in section 6. We will be conducting sales analysis every 6 months
and adjusting the promotion budget accordingly.

Furthermore, key performance indicators (KPI) will be undertaken by all who’s involved
including employees and management to maintain a high standard of achievement within
the organization
In relation to organization promotional schedule, it will have reviewed every 3 months in
order to meet deadlines.

Feel the Peel will continue to keep working on improvements needed to make our
company grow larger and became top and popular when it comes in food industry.